SAN DIEGO, Jan. 7 — Volcano Corporation (Nasdaq: VOLC), a leader in the development, manufacturing and sales of products for the diagnosis and treatment of coronary and peripheral artery disease, said today that it has closed its previously announced acquisition of Axsun Technologies, Inc.

Axsun is a leading developer and manufacturer of lasers and optical engines used in medical Optical Coherence Tomography (OCT) imaging systems and advanced photonic components and subsystems used in other industrial applications.

Under the terms of the acquisition agreement, which was announced on December 23, 2008, Volcano paid approximately $21.5 million in cash at closing. Axsun will operate as a wholly-owned subsidiary of Volcano. Volcano said it believes Axsun’s proprietary OCT technology will accelerate its OCT product development programs and provide the company competitive advantages in the invasive imaging sector.